Correlation Between Valiant Holding and Helvetia Holding
Can any of the company-specific risk be diversified away by investing in both Valiant Holding and Helvetia Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Valiant Holding and Helvetia Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valiant Holding AG and Helvetia Holding AG, you can compare the effects of market volatilities on Valiant Holding and Helvetia Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Valiant Holding with a short position of Helvetia Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valiant Holding and Helvetia Holding.
Diversification Opportunities for Valiant Holding and Helvetia Holding
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valiant and Helvetia is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Valiant Holding AG and Helvetia Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helvetia Holding and Valiant Holding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Valiant Holding AG are associated (or correlated) with Helvetia Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helvetia Holding has no effect on the direction of Valiant Holding i.e., Valiant Holding and Helvetia Holding go up and down completely randomly.
Pair Corralation between Valiant Holding and Helvetia Holding
Assuming the 90 days trading horizon Valiant Holding is expected to generate 1.75 times less return on investment than Helvetia Holding. But when comparing it to its historical volatility, Valiant Holding AG is 1.26 times less risky than Helvetia Holding. It trades about 0.05 of its potential returns per unit of risk. Helvetia Holding AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11,737 in Helvetia Holding AG on August 31, 2024 and sell it today you would earn a total of 3,703 from holding Helvetia Holding AG or generate 31.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Valiant Holding AG vs. Helvetia Holding AG
Performance |
| Timeline |
| Valiant Holding AG |
| Helvetia Holding |
Valiant Holding and Helvetia Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valiant Holding and Helvetia Holding
The main advantage of trading using opposite Valiant Holding and Helvetia Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valiant Holding position performs unexpectedly, Helvetia Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Helvetia Holding will offset losses from the drop in Helvetia Holding's long position.| Valiant Holding vs. Helvetia Holding AG | Valiant Holding vs. Banque Cantonale | Valiant Holding vs. Cembra Money Bank | Valiant Holding vs. Vontobel Holding |
| Helvetia Holding vs. Swiss Life Holding | Helvetia Holding vs. Baloise Holding AG | Helvetia Holding vs. Swiss Re AG | Helvetia Holding vs. Zurich Insurance Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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